Sila opens U.S. factory to make silicon anodes for energy dense EV batteries

Sila, an innovative startup specializing in battery materials, commenced operations on Tuesday at its new facility located in Moses Lake, Washington. This factory, recognized as the first large-scale silicon anode production plant in the Western Hemisphere, initially has the capacity to produce battery materials sufficient for 20,000 to 50,000 electric vehicles (EVs). Future enhancements may enable it to satisfy the requirements of as many as 2.5 million vehicles.

Silicon anodes are acclaimed for their potential to elevate the energy density of lithium-ion batteries by approximately 50%. With a research trajectory spanning the last 14 years, this cutting-edge technology represents a critical opportunity for the United States to secure a competitive edge in the global battery industry, according to Gene Berdichevsky, co-founder and CEO of Sila.

“Creating something novel is far more manageable when production occurs where the innovation is birthed,” Berdichevsky explained in an interview with TechCrunch.

Sila has secured contracts to supply anode materials to prominent companies, including Panasonic and Mercedes. While the primary focus will be on serving automakers and their suppliers, Berdichevsky noted that the company is also exploring opportunities within the drone, satellite, and consumer electronics sectors.

However, Sila is not alone in the pursuit of silicon anode materials. Other competitors, like Group14, which operates in Moses Lake as well, produces its proprietary formulas through a partnership with SK Innovation in South Korea. Amprius, based in Fremont, is also manufacturing substantial quantities of its material in the U.S. while collaborating with partners in China to produce larger volumes.

Berdichevsky emphasized that the Moses Lake facility distinguishes itself as the first automotive-scale silicon anode plant in the U.S. The company raised $375 million last year to facilitate the development of the factory.

In Washington State, Sila benefited from an ideal combination of factors for establishing the facility, including the availability of low-cost hydropower, expansive land, and proximity to critical raw material suppliers.

“The economic viability of this technology relies heavily on inexpensive energy—one of the major inputs—and crucial precursor materials, which we are fortunate to have in Washington State,” Berdichevsky noted.

The initial batches produced at the Moses Lake site will aim to reaffirm that they meet the quality standards for customers who have been assessing previous samples produced at Sila’s R&D facility in Alameda. “We are highly confident in these efforts, yet ultimately the testing will determine success,” Berdichevsky remarked.

Looking ahead, he expressed optimism that batteries utilizing Sila’s materials could become more affordable compared to those using graphite anodes sourced from Western suppliers. Although Chinese manufacturers can produce graphite anodes at lower prices due to significant government incentives and lax environmental regulations, Berdichevsky argues that Sila’s approach could present a more sustainable solution.

Furthermore, silicon anodes might enable automakers to reduce reliance on other costly battery materials, such as nickel, without compromising performance. “With our technology, not only do you achieve comparable performance, but you also enjoy speedy charging, local supply chains, and reduced costs,” Berdichevsky stated.

If demand trends continue upward, Sila is poised for expansion beyond its Moses Lake facility. “Every CEO of a major Western automaker anticipates that, within the next decade or perhaps 15 years at most, they will predominantly be selling electric vehicles,” Berdichevsky commented. “Envision the scenario a decade out—potentially 10 million EVs across the U.S., necessitating multiple production sites.”

Eventually, Sila aims to extend its reach into European and Asian markets as well; however, Berdichevsky, who has roots in Ukraine, remains steadfastly committed to boosting U.S. manufacturing capabilities.

“As a nation, our pride must emerge from our ability to create. It is essential for us to continue developing this industry and establishing a robust ecosystem to prevent future setbacks,” he concluded.